[scarletham]

I think you're missing the gist of his statement and also overlooking the word "almost"?

That being said, most of your definitions are still dependent on competitively pricing securities. A market maker who can't calculate reasonable theos won't be a market maker for long.

[lordnacho]

> most of your definitions are still dependent on competitively pricing securities

No, the MM doesn't care if TSLA is overpriced. He just sees where everyone is and makes a market roughly there.

> You can't provide quotes if you don't have something to quote around.

But you don't have to quote around the actual value of the item. That's the point.

[scarletham]

I work in a MM group so take this as you will, but the days of profitably making markets by just fitting everything to the screens are long gone.

[lordnacho]

I think it depends a whole lot on what exactly you are market making and how you're trying to profit. Of course many desks take views as well, but mixing in prop positions doesn't change the essence of it: the MM is trying to make money off being available for other participants.

You can of course also learn some things about where to market is going in the course of this business, and many desks are able to piggy back on some flow information for their advantage.

[ctlby]

The only real practitioner in this thread has one of the only downvoted comments. Incredible.